In compound interest the amount in interest is added to the original at the end of each year. So the next year the interest is worked out on a larger amount of money.
Malcolm invests £600 into a saving account which has an interest rate of 2% pa (per annum).
Calculate the total amount he will receive if he leaves the money untouched for 4 years.
Round to the nearest penny.
Julia invests £5200 into a savings account which has an interest rate of 3.4% pa.
Calculate the amount she would have in her account after 3 years if she leaves the money untouched. Round to the nearest penny.
Alice buys a car costing £7500. It depreciates in value each year by 7%.
How much had the car depreciated to after 2 years? Round to the nearest penny.
Sarah buys a car costing £12,500. It depreciates in value by 8% in the first year, 10% in the second year and 5% in the third year.
What is the car worth after 3 years? (Round to the nearest penny).
Dave buys a painting which cost him £250.
It appreciates in value by 16% in the first year and then 21% in the second year.
By how much had the painting appreciated after 2 years?
It is estimated that an iceberg weighs 84,000 tonnes.
As the iceberg moves into warmer water, its weight decreases by 25% each day.
What will the iceberg weigh after 3 days in the warmer water?
A local council recycles 42,000 tonnes of waste a year.
The council aims to increase the amount of waste recycled by 8% each year.
How much waste does it expect to recycle in 3 years time?
Hector buys an antique chair for £600.
It is expected to increase in value at the rate of 4.5% each year.
How much is it expected to be worth in 3 years time?
Diana puts £3,500 into an account that pays interest of 4% per annum (every year).
How much will be in the account after 3 years?
A vineyard produced 250 kilograms of grapes in 2005.
It is estimated the vineyard will be able to increase production at a rate of 3% p.a. for the next 5 years.
Calculate the weight of grapes that will be produced in 5 years time.